Current Market Mood: Fear

Here's a story worth noting from China: the San'an Optoelectronics tanked because a fund manager who owns a lot of the company went "missing." He was on vacation. Rumors that he disappeared sent the semiconductor sector lower in China and weighed on technology stocks.

iFeng: 失联传言搅动半导体“一夜惊魂”，蔡嵩松朋友圈紧急表明“在休假”

On the evening of September 20, there were rumors that "the top fund manager surnamed Cai lost contact this week", and this rumor pointed to Cai Songsong, the top fund manager of Lion Fund. For a time, the market was hotly debated.

In this regard, Cai Songsong responded in the circle of friends late at night that he was "on a normal vacation", and then the Lion Fund confirmed the matter to a reporter from the Financial Associated Press. At the same time, Cai Songsong responded to the relevant people of the Financial Associated Press that he was indeed on vacation.

...As of the end of June, the management scale of Lion Fund's non-public offerings was 65.984 billion yuan, and the management scale of Cai Songsong alone was close to half of this figure. If the debt base of 17.090 billion yuan is excluded, the total scale of the company's stock funds and hybrid funds is 48.254 billion yuan, which is only 1.58 times the total management scale of Cai Songsong.

Previously, industry insiders have analyzed that the contribution of the "Cai Songsong effect" to the scale of Lion's Fund may have hit the "ceiling", and the contribution of other equity veterans and rookies is relatively insufficient. The hidden worry behind this development model is that once Cai Songsong's career changes or his performance continues to decline sharply in the future, the benefits of Neo An will be affected, which is a practical problem for the company's leadership.

...In terms of heavy holding stocks, as of the end of the second quarter, the top ten heavy holding stocks of products managed by Cai Songsong were: North China Creation, Weir, Zhuoshengwei, China Micro, Shengbang, Zhaoyi Innovation, Sanan Optoelectronics, Beijing Junzheng, Shanghai Silicon Industry, SMIC.

Except for the stock prices of North Huachuang and Zhongwei, which rose to varying degrees in the second quarter, the rest of the heavy-holding stocks fell in the range of 14.30% to 29.00% in the second quarter.

It looks like the stock is tanking for the same reason as the rest of the sector: it's a bear market. Yet this is a top story in the finance section of iFeng. The market is full of clueless bulls (including professionals) who have no idea what they're doing.